Does this apply to EZ 2nd mtgs. or Home Equity Lines of Credit? I understand it to cover 1st mtgs only. Please clarify.

It is applicable to ALL all mortgage loans on residential properties -- not just first mortgage loans. Any time the homeowner is at risk of losing their home, the counseling notice requirement comes into play.

And is this just for conventional long-term mortgages done by servicers or does this include all those 5- 10 & 15-year mortgage loans that banks due in-house?

All. Think about the intent of the requirement. Through counseling the home owner may not lose their home. So applications are broad.

We have been under the assumption that this requirement was for consumer purpose loans. I am assuming, based on the purpose/intent of this requirement, that it can also apply to business purpose loans that are secured by their primary residence?? I cannot find anything that states otherwise.

Your assumption is correct. Purpose doesn't drive this requirement, only the fact that there is a lien (regardless of status) on a primary residence, and the borrower is delinquent.

Opinions expressed are mine, not necessarily my employers. THis is not legal advice.